Cuomo: Tax relief proposal represents ‘new day’ in NY

New York Gov. Andrew Cuomo, seated, with state budget director Robert Megna, left, talks to reporters after a meeting on tax cut proposal in the Red Room at the Capitol on Monday, Jan. 6, 2014, in Albany, N.Y. Cuomo has proposed cutting the stateís corporate income tax from 7.1 percent to 6.5 percent and eliminating it altogether for upstate manufacturers. He also has proposed paying more state aid as an incentive to any of New Yorkís 10,500 local governments that impose hard 2 percent spending caps and cut their costs by consolidating services with other towns, villages, cities and counties.
The Associated Press photo

TROY >> A multi-faceted tax relief proposal by Gov. Andrew Cuomo’s office was announced Monday, just days before his State of the State address set for Wednesday.

The proposal includes a 2-year freeze on property taxes for residents who live in communities that stay under the 2 percent tax cap and, in year two, also participate in a service sharing or administration consolidation program.

“By almost any measure, New York’s real property taxes are the highest in the nation with an average residential bill of $5,040,” according to a press release Monday which detailed the tax relief plans.

“It’s proof that it’s a new day,” Cuomo said of the proposal, which will provide $2.2 billion in tax cuts. “Once we get the negatives out of the way, the high taxes out of the way, then the assets of New York will shine.”

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The plan also calls for: A renters’ tax credit that would apply for renters with incomes under $100,000 and the credit would increase with the number in the family; a property tax “circuit breaker” which would provide relief based on a taxpayer’s abililty to pay; reforms to the state’s estate tax by increasing the estate tax threshold to $5.25 million and lowering the top rate to 10 percent over four years; merging the bank tax into the corporate franchise tax and lowering the rate to 6.5 percent; eliminating the tax rate on upstate manufacturers; and providing a real property tax credit for manufacturer, according to the press release.

“The Business Council applauds Governor Andrew M. Cuomo’s tax relief proposal that will provide more than $2 billion in savings to New York employers and residents,” said Heather Briccetti, president and CEO of The Business Council of New York State. “This is big news for the state’s economy, especially upstate, as this package will provide broad-based business tax relief, and support key business sectors across New York.”

Cohoes mayor George Primeau stated: “I don’t know Gov. Cuomo’s full plans yet but every elected official wants to see a zero percent tax increase. It’s hard to imagine that, though, when we’re hit with increasing mandates every year with the retirement system and increases in health care prices for our employees. Zero would be nice but I would like to see how that will happen.”

Nassau supervisor added, “Nassau has already been very active in shared services arrangements and has reached out to other municipalities to discuss increased shared services. It is really too early for us to know if we will get credit for these efforts or if we face penalization for doing the right thing to begin with. Nassau has had discussions with Mr. Cuomo’s staff when he was Attorney General as we were working on consolidating services. We will be very vocal with his office and our state representatives as this plan is reviewed and finalized.”